Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Monro (MNRO)
Consensus Price Target: $24.38 (41.6% implied return)
Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Why Are We Out on MNRO?
- Recent store closures and weak same-store sales point to soft demand and an operational restructuring
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Monro is trading at $17.21 per share, or 47.8x forward P/E. To fully understand why you should be careful with MNRO, check out our full research report (it’s free).
AAON (AAON)
Consensus Price Target: $143.50 (33.9% implied return)
Backed by two million square feet of lab testing space, AAON (NASDAQ: AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.
Why Are We Hesitant About AAON?
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 18.7% annually while its revenue grew
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Waning returns on capital imply its previous profit engines are losing steam
AAON’s stock price of $107.20 implies a valuation ratio of 44.6x forward P/E. If you’re considering AAON for your portfolio, see our FREE research report to learn more.
JELD-WEN (JELD)
Consensus Price Target: $1.96 (37.2% implied return)
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.
Why Should You Dump JELD?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $1.43 per share, JELD-WEN trades at 10.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JELD in your portfolio.
Stocks We Like More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
